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The Croatoan Indians were the first human inhabitants of Hatteras Island. The Croatoans were composed of two groups: the Hatterask and the Kinnakeet. As Indians were often named by either their main town, their language, or by what they called themselves, Kinnakeet referred to an area on Croatoan Island (modern day Avon) as did Hatterask (modern day Frisco, not modern day Hatteras village).[2] The central village was called Croatoan (council town, which is modern day Buxton), which is why the Indians and the Island were referred to by the English as Croatoans from Croatoan.[2]

The story of the missing colony began when John White finally returned to Roanoke on a fifth voyage to the colony, a much-delayed re-supply mission arriving in 1590. At that time, the settlement was found abandoned. The only clues to the colonists' whereabouts were the letters "CRO" carved into the bark of a nearby tree and the word "Croatoan" found carved into the palisade of the fort.[3] It is logical that the colonists left on Roanoke had gone back to Croatoan, as they had already lived there and had had a strong relationship with the natives, some of whom had visited England.

John White, who made maps showing both Croatoan and Roanoke, wrote in 1590:

I greatly joyed that I had safely found a certain token of their safe being at Croatoan, which is the place where Manteo was born, and the savages of the island our friends. [sic][4]

White had instructed them that if anything happened to them, they should carve a Maltese cross on a tree nearby, indicating that their disappearance had been forced. As there was no cross, White took this to mean they had moved to "Croatoan Island" (now known as Hatteras Island). Upon finding the message of CROATOAN carved on the palisade, White also wrote:

The next morning it was agreed by the captain and myself, with the master and others to weigh anchor and go for the place at Croatoan where our planters were for that then the wind was good for that place.[5]

However, he was unable to conduct a search, as a massive storm was brewing and his men refused to go any further. The next day, they instead left the area without looking further for the colonists.[6]

For many years, the only ways to reach Hatteras Island was by ferry and footpath.[7]

In November 1963, the Herbert C. Bonner Bridge was completed, connecting Hatteras Island to the northern Outer Banks.[7] The bridge's namesake, Herbert Covington Bonner, was a Democratic congressman who represented the area between 1940 and 1965.[8] The $4 million to build the bridge was financed by the State of North Carolina, the U.S. Commerce Department, and the National Park Service.[8]

From the south, Hatteras is reached by way of a 40-minute ride on the Ocracoke-Hatteras ferry.[7] Presently there is no direct route linking Hatteras Island to the Hyde County mainland, resulting in a 2-3 hour commute around the Pamlico Sound.

During a storm on October 26, 1990, a fishing dredge broke loose from its mooring and destroyed part of the Herbert C. Bonner Bridge, cutting Hatteras Island's only bridge to the north.[9] The bridge was repaired by February 1991.[9]

In 2011, Hurricane Irene destroyed part of Highway 12 between Nags Head and Rodanthe.[7] Until the construction of a temporary bridge in October 2011, the only way of accessing Hatteras Island was by ferry.[10]